Research
Working Papers
"Subsidizing Business Entry in Competitive Credit Markets", with V. Cuciniello and C. Michelacci, under revision for the JPE
Start-up subsidies crowd out equity rather than debt when paid out as a refund of start-up expenditures and result in higher bankruptcy rates. The "I Stay in the South" policy recently introduced in Italy would have been four times as beneficial if firms were forbidden to distribute ex-post transfers as dividends.
“Spending Allocation under Nominal Uncertainty: A Model of Effective Price Rigidity", with Gaetano Gaballo, under revision for the JEEA
The average price paid by consumers respond less than one for one to monetary shocks despite full pass-through to firm prices and wages because consumers switch from high to low markup stores due to misperceived higher gains from switching. A positive comovement between output and inflation is possible even if prices are fully flexible.
Published Papers
"Ambiguity Aversion and Heterogeneity in Households' Beliefs", with C. Michelacci, The American Economic Journal: Macroeconomics, forthcoming
"The Extensive Margin of Aggregate Consumption Demand" with C. Michelacci and A. Pozzi, The Review of Economic Studies, June 2021
"Ambiguous Policy Announcements" with C. Michelacci, The Review of Economic Studies, Volume 87, Issue 5, October 2020, Pages 2356–2398
"Price Dynamics with Customer Markets", with A.Pozzi and N.Trachter, The International Economic Review, 2019, Volume60, Issue1
"Monetary Shocks with Observation and Menu Costs", with F. Alvarez and F. Lippi. The Journal of the European Economic Association, 2018, Vol 16 (2)
"Monetary Shocks in Models with Inattentive Producers", with F. Alvarez and F. Lippi. Online Appendix. The Review of Economic Studies, 2016, 83 (2): 421-459.
"Monetary Policy, Doubts and Asset Prices", with P. Benigno. The Journal of Monetary Economics, 2014, Vol 64
"Exogenous Information, Endogenous Information and Optimal Monetary Policy", with M. Wiederholt. The Review of Economic Studies, 2014, Vol 81
"Optimal price setting with observation and menu costs", with F. Alvarez and F. Lippi. The Quarterly Journal of Economics, 2011, Vol 126 (4).
"Does Inflation Adjust Faster to Aggregate Technology Shocks than to Monetary Policy Shocks?". The Journal of Money, Credit and Banking, 2011, Vol 43 (8)
"Monetary Policy and Price Responsiveness to Aggregate Shocks under Rational Inattention". The Journal of Money, Credit and Banking, 2012, Vol 44 (7)